Let AE = Aggregate Expenditures, C = Consumption, I_P =

question 186

Multiple Choice

Let AE = Aggregate Expenditures, C = Consumption, I_P = Planned Investment,
G = Government Purchases. Consider a simple aggregate expenditures model, where
AE = C + I_P + G and all components of aggregate expenditures except consumption are autonomous. In this model, the multiplier is _____.

• A) 1 ÷ (1 - MPS) where MPS = marginal propensity to save
• B) 1 ÷ MPC where MPC = marginal propensity to consume
• C) 1 ÷ MPS where MPS = marginal propensity to save
• D) MPC ÷ MPS ÷ ∆Y

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Definitions:

Drivetrain Components

The collective parts of a vehicle's drivetrain system, including the engine, transmission, driveshafts, differentials, and axles, responsible for propelling the vehicle.

In-Phase

Usually used to mean properly timed or properly balanced. A driveshaft that is in-phase would be assembled balanced and with the yokes aligned.

Drive Axles

The axles connected to the vehicle's drivetrain that are responsible for transmitting power from the transmission to the wheels, enabling movement.

Parallel-Joint Driveline

In driveline terminology, a drive shaft construction in which all of the companion flanges and yokes are parallel with the working angles of the U-joints set to being equal and opposite.